Article by : Roger Lo Ming
The Finance Minister had in his budget 2019 speech delivered on 2-11-2018 announced some intended changes to the real property gains tax and stamp duty. The followings are the summary of the budget speech and the implementation of the changes as at 18-2-2019:
| Budget 2019 Speech | Implementation |
| Real Property Gains Tax
1) Amendment to disposal of property in the 6th and subsequent years: Individual : 5% |
Amended by Section 70 of the Finance Act 2018 (Act 812)
Effective: 1-1-2019
|
2) Exemption for disposal of property in the 6th and subsequent years:
Effective: 1-1-2019 |
Implemented by PU(A) 360/2018 Real Property Gains Tax (Exemption) Order 2018:
Effective: 1-1-2019 |
| Stamp Duty on instrument of transfer of real property
RM1 ~ RM100,000 : 1% Effective: 1-1-2019 |
Amended by Section 68(d) of the Finance Act 2018 (Act 812)
Effective: 1-1-2019 |
| Stamp Duty exemption for the purchase of first residential home
Type A:
|
Implemented by PU(A) 321/2018 Stamp Duty (Exemption) (No. 4) Order 2018:
|
Type B:
Effective: SPA executed from 1-1-2019 to 30-6-2019 |
Not implemented yet. |
Type C:
|
Implemented by PU(A) 320/2018 Stamp Duty (Remission) Order 2018:
|
After the delivery of the budget 2019 speech, the Star had on 29-12-2018 reported that the Finance Minister had announced that “first-time homebuyers will be fully-exempted from paying stamp duty for properties up to RM1mil from Jan1”. The statement merely reiterates what was said in the budget 2019 speech. However, since the exemption has yet to be passed by the parliament as at the publishing of this article, interested house buyers will have to be patient and wait for the issuance of the relevant government gazette.